Financial stability is the most desirable of all needs for individuals. All individuals are in need of financial stability irrespective of their age and stages in career. During school days, children receive pocket money which they spend to satisfy their little wishes. With growing age, monetary requirements are sorted out by our parents.

Later on, on being capable and earning individuals, people begin to manage their financial requirements themselves. It is then their responsibility to support parents during old age and also nurture their children. However, situations arise when despite the best of planning, one loses control of the future due to accidents. It is during this juncture that a proper financial planning should be done to address all material needs. Also, enough funds should be invested beforehand to support family members in the event of occurrence of any calamity or untoward accidents. There is a need to plan for situations when it not only rains but pours.

We all wish to ensure that our hard-earned money is utilized in the best and most effective way possible. To ascertain the same, it is most crucial to set up a proper financial plan so that everyday needs are met and also lifetime goals like owning a car or house are achieved keeping sufficient funds in store for a comfortable future. However, the initial step before conducting a careful financial planning is to enlist the possible goals (like own car, own house, child’s higher education, marriage, etc.) individual wishes to achieve in life. This imparts a clear idea regarding the monthly expenditure and investment possible in accordance to a fixed income for any individual. Also, based on the individual’s earning potential and age, the type of investment (like fixed deposits, SIPs, ULIPs, mutual funds, shares/stocks, etc.) should be planned so as to offer better monetary return yet ensuring minimum risk involved. A key factor of financial planning is to set aside funds to address adverse/emergency situations such as life-threatening medical conditions, accidents, natural calamity, event of a job loss, etc. Such emergency funds should be segregated from the regular investments and this is taken care of by a term insurance plan.

Term insurances form an integral part of an individual’s finances and are beneficial in cases of emergency which obviously involves instant loss of protection, fund and support. Life insurances launched in the initial days, used to offer benefits in the case of accidental/untimely death and critical illness only. Also, medical insurances were a separate category which dealt with the event of medical emergency specifically. However, several companies have now launched attractive life insurance plans which offer multiple advantages such as comprehensive online term plans  which assure maximum protection for the family members in case of any sudden loss due to accidents or severe medical conditions. New plans provide coverage for events like death, accident, terminal illness, accident resulting in permanent disability and critical illness (considering an enhanced plan of inclusion of 36 different critical illnesses). Although the untimely loss of a loved one is inconsolable, at least the family members are offered financial support to deal with the loss and lumpsum money drain(in case of medical treatment for any critical/terminal illness) is prevented. Hence, it is always a wise decision and should be made mandatory to opt for life insurance plans for self and family members to ensure security and protection.

About Aegon Life:

With a complete product suite of life insurance plans, superior technology, and customized service, Aegon Life Insurance Company Limited launched its pan-India operations in July 2008. As a joint venture between Aegon – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, Aegon Life Insurance adopts a local approach to facilitate customer interaction. Our vision to be the most recommended new age life insurance company has enabled us to leverage digital platforms that bring transparent solutions to customer needs. Our financial planning and investment solutions include term life insurance plans, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.